Vice President Al Gore and Treasury Secretary Robert E. Rubin announced in late June the final details of Treasury's Electronic Transfer Account (ETA) and the financial institutions that have committed to offer it.
Treasury designed the ETA, a low-cost account to be offered at federally insured financial institutions, to allow federal payment recipients to take advantage of direct deposit. The first institutions to reach a preliminary agreement to offer the ETA are Banco Popular de Puerto Rico & N.A., Bank of America, Britton & Koontz First National Bank, Chase Manhattan Bank, Washington State Bank and Wells Fargo & Company.
"Broad participation by banks, savings and loans, and credit unions of all sizes will be essential to the success of the account," said Secretary Rubin. "By offering the ETA, these institutions are expanding access and services to their communities, helping to bring more Americans into the financial services mainstream. ETAs will provide a simple, safe and secure way to receive federal payments."
The final ETA structure will allow federal payments recipients to sign up for an ETA, receive direct deposit through another commercially available account of their choice, or elect to continue receiving a paper check. By working with consumer groups and financial institutions and conducting independent market research, Treasury has developed a broadly supported program that creates access to direct deposit for millions of Americans who do not have accounts today.
